Hewlett Packard Enterprise: Trading At A Discount, Well-Positioned For Tech Megatrends

Jishan Sidhu
500 Followers
(8min)

Summary

  • HPE's Q4'24 revenues grew 15.65% YoY to $8.48 billion, with EBITDA up 20.41% and free cash flow at $1.42 billion.
  • HPE's server products, especially GreenLake Cloud, position it well for AI and hybrid cloud growth, justifying a 'buy' rating.
  • HPE's stock, up 28.95% TTM, shows undervaluation with a trailing P/E of 14.22x and a DCF valuation of $27.72/share.
  • Risks include potential AI demand reduction and high competitive intensity, but HPE remains a strong competitor trading at a discount.

Hewlett Packard Enterprise (<span class='ticker-hover-wrapper'>NYSE:<a href='https://seekingalpha.com/symbol/HPE' title='Hewlett Packard Enterprise Company'>HPE</a></span>) corporate headquarters located in Silicon Valley

Sundry Photography

The Hewlett Packard Enterprise Company (HPE) is a Spring, Texas-based multinational information technology company. The company currently provides services across server design and vending, storage, networking, containerization, and associated consulting and support.

Through these operations, HPE generated Q4'24

This article was written by

500 Followers
I am a Canadian business student with experience as an Investments Analyst at a mid-sized asset management firm and am an incoming Summer Private Markets Analyst at a Maple 8 pension plan. I am focused on quality long-only articles and searching for high-value companies. I have an event-driven focus, evaluating how equities perform under macro events, considering their financials and corporate strategy above all else.Through university clubs, I would also like to disclose my association with Francesco Infusino and Ben Lisi.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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